Odisha plans India's first Agri-PV policy, targets 1 GW by 2030

Odisha plans to become the first Indian state with a dedicated policy for agrivoltaics, the practice of growing crops and generating solar power on the same piece of farmland. Deputy Chief Minister Kanak Vardhan Singh Deo announced the proposed Agri-PV Policy 2026 on 22 October 2026 at the 7th Agrivoltaics World Conference at Bharat Mandapam in New Delhi. The state is aiming for 1 gigawatt (GW) of agrivoltaic capacity by 2030, and says at least 90% of every project site must stay under active cultivation. The policy is still being finalised and has not yet been notified.

Agrivoltaics, often shortened to Agri-PV, means mounting solar panels high above a field, or in spaced rows, so that crops can still be grown and harvested underneath or between them. The panels produce electricity, and the partial shade they give can reduce water loss from the soil. For India, the idea answers a real conflict. The country needs large areas of land for solar power to meet its clean-energy goals, while farmland is scarce and politically sensitive. Ground-mounted solar parks usually take land out of farming altogether. Agri-PV tries to keep the land producing food while it also produces power.

For a farm household, the business case is a second, steadier income. Crop income swings with rainfall, pests and mandi prices. Electricity sold under a 25-year contract, or a fixed lease rent from a developer, does not. Odisha's offer of guaranteed purchase by GRIDCO is meant to reduce the main risk developers face, which is whether anyone will buy the power at an agreed price for the life of the project. The 90% cultivation rule and the promise that the land stays classified as agricultural are aimed at the main worry of farmers and officials: that solar projects could quietly turn into land conversion.

The state says it has about 40.7 lakh acres of cropland suitable for such projects and 47.7 lakh acres of fallow land. Fallow land is land left uncultivated for a season or longer, and putting part of it to use could bring income from plots that now earn nothing.

There are open questions. The full policy text, tariffs and subsidy amounts have not yet been published, and the terms may change before notification. Critics have also pointed out that some high-yield paddy varieties, Odisha's main crop, may lose output under constant partial shade. Farmers might then have to switch to shade-tolerant crops such as turmeric or ginger, which have smaller and less certain markets. How the lease rents are set, and who bears the cost if crops under the panels do poorly, will decide whether small farmers gain.

Short-term: Solar developers, equipment makers and farm-service firms will watch for the final policy text and tariff terms. Farmer producer organisations and cooperatives in Odisha may start exploring pilot projects on members' land.

Long-term: If the 1 GW target is met under the 90% cultivation rule, Odisha could add a sizeable clean-power source without taking land out of farming, and farm households could earn a second, stable income. Other states could use the policy as a model. If shade cuts paddy yields or lease terms are weak, the gains could flow mainly to developers.

Who is affected: Farmers and landowners in Odisha, especially those with fallow or low-yield plots; farmer producer organisations and cooperatives; solar developers and equipment suppliers; GRIDCO and the state's power consumers; and rural businesses in irrigation, cold storage and agro-processing.

Questions and Answers